A token is defined as something that represents value, services, or a product.

There are three main types of tokens built with blockchain technology:

  1. A utility token that provides access to a product or service including software, digital content, etc.
  2. A security token that represents a real-world, physical asset.
  3. An equity token that represents partial ownership in a company.

All three types of tokens are bought and sold with the hope of gaining a profit.

The words “crypto asset” and “digital asset” can also be used to describe tokens.